Its name comes from Jiang, short for the city of Jiangning (江寧, now Nanjing), and su, for the city of Suzhou. The abbreviation for this province is "苏" (sū), the second character of its name.

Since the Sui and Tang dynasties, Jiangsu has become one of the nation's economic and commercial centers, partly due to the construction of Grand Canal. Yangzhou, Nanjing, Wuxi, Suzhou and Shanghai have all been among the foremost hubs of economic activity in China. Shanghai was separated from Jiangsu to become a municipality in 1927. Since the initiation of economic reforms in 1990, Jiangsu has become a focal point for economic development. It is widely regarded as China's most developed province measured by its Human Development Index (HDI). However, its development is not evenly distributed, with the Wu-speaking southern part of the province being significantly more well-off than its Mandarin-speaking north, which sometimes causes tensions between northern and southern residents.